Continue with dollar cost averaging or change strategy?

Delaying purchasing has been a big disapointment lately on the rise BUT if there is a fall or crash ( and who can tell ? ) then not diving in would be a big relief. If we could guarantee a rise then pile in but profit takers will cause fluctuations and something or other will buck the trend causing a fall - maybe. Best to continue drip purchases but only what you can afford. If price takes a big drop increase purchase amounts and hold back on the peaks if possible. Hard to determine the peaks though if prices continue to rise. That's why it is difficult to speculate. Price rises only become material when selling and stackers probably don't sell so all this gain is virtual until sold. I'm continuing to buy so best of luck in your strategy. I just sold some gold today and made 13% profit within a few months, hoping to buy more silver with the proceeds after the Christmas credit cards are paid off.
 
Just call up the dealers and ask them for stocking levels? Once your found out what they had to sell, get the price, plugged it in to your spreadsheet to calculate the relative efficiency and markup on spot, then if it doesn't look sus, just buy what they have. No pointing waiting a month or a 1kg pamp just because you always buy pamps. This game(to me) is only about the weight...

To me, we're on the second bottom step in a stairwell in a 20 story building. Timing entry is not all that important. If you have to, also consider the fact that the high AUD is giving you excellent buying prices right now. It may get better, but is at a historical high right now. If China pulls back to regroup, the AUD will be trading at 50-60c in a week :). Value doubles in a week. Nice huh?

Just don't buy on the third up day in a row :)
 
good thread

perhaps by reverse engineering you can get a better perspective

your PM can do 1 of 3 things

go up
go down
maintain its price

so doing your DCA (which I have been doing as well) and the price goes up all is well. You might have made more by buying more earlier but you are still up.

the price goes down, you continue to buy more DCA and reduce the overall avg price you paid for your PM. Not up but your cost per unit trend down.

does nothing, is a push you continue to do your DCA and you see no real gains or losses in your average costs.

I think it best to address option 2 since this is what worries most investors.

it goes down

my question are

'why are you collecting PM ?'

'what is your exit strategy ?'

'are you maintaining enough liquid fiat to cover your costs for X weeks/months in the future ?'

I am collecting silver because I see the ratio, know that the price is manipulated but have faith in that silver will see its day again. I don't know if it will be 1 month, 1 year or 10 years. I am prepared to wait.

My exit stategy is to wait for the gold/silver ratio to hit X. When that happens I can swap, or purchase an asset with long term upside

I always maintain enough fiat to cover my expenses for 6 months, my wife keeps more. Perhaps I should have bought more PM with it, but I reached my first year goal in about 8 months and am satisfied (for now) with my holdings.

were I you, I wouldn't think about it. I would regularly buy when I was ready. Be aware of options and delivery days and historic pricing patterns, but buy with regularity.

each and every person here on this site has been where you are now. Maybe they were wondering when it was at 9 or 11 or 15 or 17. Those who followed DCA are happy they did. I know I am.
 
If you are buying ever 2 weeks.
You might have to factor in the extra postage prices as opposed to buying 1 big chunk and only 1 postage price.
It might work out to be the same price overall?
 
The only regret I have is not buying more metal sooner. Will you be saying the same thing in 2 months time?
 
Sorry for a newbie question.

Do people here dollar average at. Certain oz size?

I get paid fortnightly and was thinking of buying 1 oz silver from the coin dealer to save on postage.

Cheers
Terry
 
Terry88 said:
Sorry for a newbie question.

Do people here dollar average at. Certain oz size?

I get paid fortnightly and was thinking of buying 1 oz silver from the coin dealer to save on postage.

Cheers
Terry
Click to expand...

I'm in a similar boat mate. My silver and gold purchases come from after tax wages & living expenses each fortnight. I pay what needs to be paid for the household running costs and save the rest in metal. Some months I get more, some I get less. I don't have any fixed oz amount that I target, but I value going in on bang for buck where I can. This usually means going after bullion and larger bars, but obviously, that's not always affordable.

If you're buying in small amounts, then buying over the counter to save on shipping makes absolute sense.

Be sure to take a few happy snaps from time to time mate and share the joy here on the forums. If you look at the 'today I bought' thread, folks are quite creative in taking photos of their purchases and even an ounce or two photographed right can have a terrific impact.

It's also a SS inside joke to take a photo of your metal with some kind of household food item. Veges are popular :)

Have fun!
 
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